Canada Supreme Court Holds ICO Organizer in Contempt

In Canada, the organizer of initial coin offering recognizes in contempt of court disobeying ruling from the Quebec Supreme Court.

The Autorité des marchés financiers (AMF), Quebec’s chief financial regulator, expressed in a statement on 20th of October. However, PlexCoin ICO organizer Dominic Lacroix and his related company, DL Innov inc. Since it has violated court orders focused on preventing them from soliciting for Plexcoin.

In July, the controversy was between AMF and PlexCoin ICO organizers. Therefore, when they published the prohibition order to Lacroix, DLT Innov, and several associated companies. They regulated them from advertising a planned token sale for PlexCoin.

The AMF also issued a notice by saying that the companies order to block any relates websites and remove any advertisement providing any news of cryptocurrency release.

The order was particularly mentioned that PlexCoin is an ethereum-based token that advertises itself as “the next cryptocurrency”. It promotes the “potential profit” that investors can earn by taking part in the early stages of the PlexCoin ICO.

In September, a further restriction release by the Canadian regulators, along with an order to the cryptocurrency backers to not “dispose any funds, securities or other property in their possession to them.”

Quebec Supreme Court Justice Marc Lesage has recognized. Both Lacroix and DL Innov are guilty of violating the past order of the court.

From the AMF announcement:

“In his decision, [Lesage] emphasized that the evidence filed by the AMF demonstrates beyond any doubt that Dominic Lacroix and DL Innov Inc., representatives and alter ego of PlexCorps and PlexCoin, continued to solicit and propose to investors, directly and indirectly, to invest in the purchase of PlexCoin, a virtual currency, after orders issued by the Administrative Court of Financial Markets preventing them from July 20, 2017”.

A hearing will reportedly take place on 14 of November to estimate the penalty for the finding. The huge argument occurs at the time of publication of guidance on the blockchain funding. Meantime, the Canada Securities Administrators said that it has found “many” ICO-derived tokens constitute securities.